Loan Structure
Borrowing availability is determined as a percentage of the following business assets:

• Accounts Receivable; typical advance rates are 80% of eligible accounts
• Inventory, when offered, advance rates range from 20-50% of eligible inventory
• Equipment, when offered, advance rates vary, appraisal required

Pricing
Our pricing is very competitive in the market we serve. Our rates are prime-based and are dependent on the size of the transaction, the collateral associated with the transaction and the credit quality.

Contract Term
The term of our financing contracts is typically one year and can be longer if requested.

What is Asset-Based Lending and how does it differ from other types of lending?
Asset-based lending is a form of financing in which the lender provides funds secured by  the business assets of a company that include accounts receivable, inventory, machinery and equipment, and in some instances, real estate.  It offers companies an alternative to traditional bank financing because asset-based lenders are able to provide loans to borrowers with risk characteristics typically outside a bank’s comfort level.  Some of these risk characteristics are personal or company bankruptcies, reorganizations, liens, judgments, losses, high leverage and companies that have been in business for less than three years.  The basic credit criteria that banks follow would exclude companies in these circumstances from obtaining a traditional unsecured or cash-flow loan.  Even with the higher risks associated with asset-based lending, the rates charged are only slightly higher than bank loans.

Asset-based lending is separate and distinct from factoring.  Factors purchase invoices, require control of cash collections, typically contact account debtors and generally charge rates that are considerably more expensive than asset-based lenders. As an asset-based lender, Austin Financial’s loans are based on the underlying pool of collateral.  We do not own your receivables.  We provide a line of credit with your business assets serving as supporting collateral.  Austin does not interfere with your relationships with your customers.  You collect your invoices and the payments come to your office location. 

As a long established and highly regarded asset-based lender, Austin Financial looks beyond financial statements in evaluating whether we will enter into a relationship with a borrower.  We look at where a company has been and where it’s heading.  We want to learn about the management team and understand the story behind the numbers.  We are a true partner to our clients through challenging times as well as times of prosperity.  The benefits of financing with us far outweigh the costs. There is no “red tape” with Austin Financial.  We’re able to offer more streamlined processes and quicker response times.  Austin does not require financial covenants for its borrowers, so our customers are able to focus on what they do best, selling their products or services.  No time is wasted trying to manage the business to strict financial guidelines that banks or other finance companies require.  Finally, Austin is able to take a much more flexible approach in structuring our loans and providing customized financing solutions.